Delaware Corp. prepared a master budget that included $16,200 for direct materials, $32,400 for direct labor, $20,250 for variable overhead, and $38,800 for fixed overhead. Delaware Corp. planned to sell 4,050 units during the period, but actually sold 4,360 units. What would Delaware's total costs be if it used a flexible budget for the period based on actual sales? (Do not round your intermediate calculations. Round your final answer to the nearest dollar amount.) Multiple Choice O OOO $108,360 $101,418 $112,920 $115,823

Delaware Corp. prepared a master budget that included $16,200 for direct materials, $32,400 for direct labor, $20,250 for variable overhead, and $38,800 for fixed overhead. Delaware Corp. planned to sell 4,050 units during the period, but actually sold 4,360 units. What would Delaware's total costs be if it used a flexible budget for the period based on actual sales? (Do not round your intermediate calculations. Round your final answer to the nearest dollar amount.) Multiple Choice O OOO $108,360 $101,418 $112,920 $115,823

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 5P: Listed below are the budgeted factory overhead costs for 2011 for Moss Industries at a projected...

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Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per unit, direct labor of $3 per unit, and manufacturing overhead of $1 per unit. Fixed costs are $35,000. What would be the budgeted amounts for 20,000 and 25,000 units?
Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
Judges Gavel uses this information when preparing their flexible budget: direct materials of $3 per unit, direct labor of $2.50 per unit, and manufacturing overhead of $1.25 per unit. Fixed costs are $49,000. What would be the budgeted amounts for 33,000 and 35,000 units?
Listed below are the budgeted factory overhead costs for 2011 for Moss Industries at a projected level of 2,000 units: Required: Prepare flexible budgets for factory overhead at the 1,000, 2,000, and 4,000 unit levels. (Hint: You must first decide which of the listed costs should be considered variable and which should be fixed.)
Refer to Cornerstone Exercise 8.13. In March, Nashler Company produced 163,200 units and had the following actual costs: Required: 1. Prepare a performance report for Nashler Company comparing actual costs with the flexible budget for actual units produced. 2. What if Nashler Companys actual direct materials cost were 1,175,040? How would that affect the variance for direct materials? The total cost variance?
USD Inc. has established the following standard cost per unit: Although 10,000 units were budgeted, 12,000 units were produced. The Purchasing department bought 50,000 lb of materials at a cost of $237,500. Actual pounds of materials used were 46,000. Direct labor cost was $287,500 for 25,000 hours worked. Required: Make journal entries to record the materials transactions, assuming that the materials price variance was recorded at the time of purchase. Make journal entries to record the labor variances.
Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing basis are as follows: During the year, the company had the following activity: Actual fixed overhead was 12,000 less than budgeted fixed overhead. Budgeted variable overhead was 5,000 less than the actual variable overhead. The company used an expected actual activity level of 12,000 direct labor hours to compute the predetermined overhead rates. Any overhead variances are closed to Cost of Goods Sold. Required: 1. Compute the unit cost using (a) absorption costing and (b) variable costing. 2. Prepare an absorption-costing income statement. 3. Prepare a variable-costing income statement. 4. Reconcile the difference between the two income statements.
Douglas Davis, controller for Marston, Inc., prepared the following budget for manufacturing costs at two different levels of activity for 20X1: During 20X1, Marston worked a total of 80,000 direct labor hours, used 250,000 machine hours, made 32,000 moves, and performed 120 batch inspections. The following actual costs were incurred: Marston applies overhead using rates based on direct labor hours, machine hours, number of moves, and number of batches. The second level of activity (the right column in the preceding table) is the practical level of activity (the available activity for resources acquired in advance of usage) and is used to compute predetermined overhead pool rates. Required: 1. Prepare a performance report for Marstons manufacturing costs in the current year. 2. Assume that one of the products produced by Marston is budgeted to use 10,000 direct labor hours, 15,000 machine hours, and 500 moves and will be produced in five batches. A total of 10,000 units will be produced during the year. Calculate the budgeted unit manufacturing cost. 3. One of Marstons managers said the following: Budgeting at the activity level makes a lot of sense. It really helps us manage costs better. But the previous budget really needs to provide more detailed information. For example, I know that the moving materials activity involves the use of forklifts and operators, and this information is lost when only the total cost of the activity for various levels of output is reported. We have four forklifts, each capable of providing 10,000 moves per year. We lease these forklifts for five years, at 10,000 per year. Furthermore, for our two shifts, we need up to eight operators if we run all four forklifts. Each operator is paid a salary of 30,000 per year. Also, I know that fuel costs about 0.25 per move. Assuming that these are the only three items, expand the detail of the flexible budget for moving materials to reveal the cost of these three resource items for 20,000 moves and 40,000 moves, respectively. Based on these comments, explain how this additional information can help Marston better manage its costs. (Especially consider how activity-based budgeting may provide useful information for non-value-added activities.)
Johnson Inc. produces leather handbags. Johnson Inc. estimates it will use 3,500 square meters of leather in production in Aug nd170 meters of leather in production in September. Johnson Inc's leather inventory policy is 30% of next month's production needs Whe e purchases be in August? Multiple Choice 3,425 square meters 3,500 square meters 3,575 square meters 4,625 square meters
Delaware Corp. prepared a master budget that included $18,360 for direct materials, $28,200 for direct labor, $15,700 for variable overhead, and $39,400 for fixed overhead. Delaware Corp. planned to sell 4,080 units during the period, but actually sold 4,380 units. What would Delaware’s direct materials cost be if it used a flexible budget for the period based on actual sales? (Do not round your intermediate calculations.) Multiple Choice $19,710 $18,375 $77,115 $17,133
Delaware Corp. prepared a master budget that included $24,360 for direct materials, $28,100 for direct labor, $18,270 for variable overhead, and $38,900 for fixed overhead. Delaware Corp. planned to sell 4,060 units during the period, but actually sold 4,310 units. What would Delaware’s variable overhead cost be if it used a flexible budget for the period based on actual sales? (Do not round your intermediate calculations.) Multiple Choice $18,270 $19,395 $17,224 $38,900
Delaware Corp. prepared a master budget that included $16,120 for direct materials, $36,270 for direct labor, $18,135 for variable overhead, and $39,600 for fixed overhead. Delaware Corp. planned to sell 4,030 units during the period, but actually sold 4,330 units. What would Delaware's total costs be if it used a flexible budget for the period based on actual sales? (Do not round your intermediate calculations. Round your final answer to the nearest dollar amount.) Multiple Choice $115,375 O $110,815 O $103,873 $118,278